Fannie Mae-No Politics (FNMA)

[GAK-]

From Tim Howard:

"Favorable resolution or settlement of the lawsuits is an absolute prerequisite for Fannie and Freddie’s release from conservatorship under a consent decree and subsequent recapitalization, but I don’t know why the parties would feel they have to have a capital plan in place before settlement could occur. Settlement of the suits is a matter between Treasury–which is both the instigator and the beneficiary of the net worth sweep–and the plaintiffs, while the recapitalization plan as a matter between the companies and FHHA. I would be surprised if Treasury has been holding up settlement negotiations pending promulgation of a final capital rule and the development (with advisor input) and approval (by FHFA) of the companies’ recapitalization plans"